Lava to invest Rs 1,100 crore in component manufacturing

The investment plan aims to strengthen local smartphone component production, create nearly 8,500 jobs, and reduce India’s dependence on imported parts through expanded manufacturing and localisation initiatives.

Indian smartphone maker Lava International has announced plans to invest Rs 1,100 crore over the next five years to scale up its electronics components manufacturing business in India. The company expects the expansion to generate around 8,500 employment opportunities while boosting domestic value addition in smartphone production.

The investment will focus on manufacturing critical smartphone components such as display modules, camera modules, multilayer printed circuit boards (PCBs), and handset enclosures within the country. The move forms part of Lava’s broader strategy to strengthen localisation and reduce reliance on imported parts.

Speaking about the expansion, Lava executives, as per the reports, said the company has increasingly shifted its attention toward building a stronger domestic component ecosystem. The company, which already designs its smartphones in India, is also exploring technology partnerships while leveraging its in-house engineering capabilities.

Sanjeev Agarwal, Executive Director and CEO of Lava International, reportedly said the company had begun diversifying into component manufacturing about a year ago to improve quality standards and enhance local sourcing. He added that Lava currently has the capacity to manufacture nearly 40 million mobile phones annually.

Focus on local manufacturing ecosystem

As part of its expansion drive, Lava has also launched a new mobile charger manufacturing facility. According to the company, the chargers are designed in India and primarily use locally sourced components.

The company said the locally manufactured chargers are nearly 20 per cent cheaper compared to earlier sourced units, while also improving operational efficiency and product quality. Lava believes domestic manufacturing will help improve cost competitiveness and strengthen supply chain resilience over the long term.

The Noida-based manufacturing facility currently employs more than 3,000 workers, and the company expects the fresh investment to significantly increase workforce requirements in the coming years.

Government support and industry challenges

Lava International Managing Director Sunil Raina said the company has submitted proposals under the Centre’s Electronics Components Manufacturing Scheme (ECMS) to support its component manufacturing plans. The company is also looking to benefit from Uttar Pradesh government initiatives aimed at promoting electronics manufacturing.

India’s smartphone industry underwent major changes after intense competition from Chinese brands disrupted the domestic market several years ago. Many Indian brands lost significant market share during that period. Lava, however, has gradually rebuilt its smartphone business through a renewed focus on localisation, manufacturing, and product design within India.